Jul 28, 2026 – 1.05pmReserve Bank governor Michele Bullock has warned Australian living standards will continue to stagnate until the “fundamental challenge” of weak productivity growth is addressed, making clear the central bank was prepared to raise interest rates again if inflation remained stubbornly above target.Bullock said on Tuesday that the slowdown in productivity growth made the economy more vulnerable to global shocks, and the best contribution the RBA could make to living standards was to fulfil its dual mandate to keep unemployment as low as sustainably possible while returning inflation to its 2 to 3 per cent target.Subscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber? Fetching latest articles
Bullock sounds alarm on Australia’s living standards slump
The Reserve Bank governor says she is prepared to raise interest rates again as weak productivity leaves the economy more vulnerable to inflation shocks.
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